CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Alibaba’s US$20 billion Hong Kong listing could take off as soon as in the next few weeks

At US$20 billion, the amount would make it the largest share sale in Hong Kong since 2010.

Chinese ecommerce giant Alibaba could file a formal listing application with the Hong Kong stock exchange as soon as in the next few weeks, people familiar with the matter told Bloomberg.

The offering, as earlier reports have revealed, aim to raise US$20 billion although Alibaba has yet to finalize a fundraising target. The firm is said to have picked China International Capital Corp and Credit Suisse to lead the planned share sale.

The new listing would bring the firm closer to investors in its home country. Earlier reports last month revealed plans from the firm to file for a listing with Hong Kong confidentially from as early as the second half of 2019.

At US$20 billion, the amount would make it the largest share sale in Hong Kong since 2010. In 2010, the Agricultural Bank of China raised US$22.1 billion after it increased its initial public offering (IPO) size in a listing in Shanghai and Hong Kong. In the same year, insurer AIA raised US$17.8 billion in its debut in Hong Kong.

The deal would mark a victory for Hong Kong, after it let Alibaba slip away in 2014 to list in New York due to the dual-class share structure offerings by the New York Stock Exchange (NYSE).

Hong Kong lures Asian tech unicorns

Last year, Hong Kong finally acceded to the dual-class share structure in a bid to prevent Asian tech unicorns from selecting IPO destinations outside of Asia. The decision has proven worthwhile, with two of the hottest tech firms Xiaomi and Meituan Dianping choosing to list with the Cantonese-speaking island with much fanfare.

Alibaba has a whopping market value of US$400 billion and is seen as a prize to Hong Kong. Mr Charles Li, chief executive of Hong Kong Exchanges and Clearing, has repeatedly said that he wants the firm to list in the city.

The efforts to change its listing rules have proven to be effective, as Hong Kong unseated Japan recently as the second-most valuable stock market in Asia, at a market cap of US$5.78 trillion in April, a tad higher than Japan’s US$5.76 trillion, Bloomberg data showed.

China currently remains the biggest equity market in Asia with a market cap of around US$7.6 trillion.

Meanwhile, the trade dispute between the US and China and the increased hostility from the United States (US) government on Chinese tech firms have created market jitters among investors when they consider trading Chinese firms listed on Wall Street.

Alibaba debuted on the NYSE on September 18, 2014, at US$68 per share. The listing was the biggest US IPO in history, larger than US tech firms Google, Facebook, and Twitter combined.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.